Fifth Third posts 2Q profit on unit sale
Fifth Third Bancorp today posted a profit for the second quarter because of a $1.1 billion gain from the sale of a controlling interest in its processing business.
Fifth Third Bancorp today posted a profit for the second quarter because of a $1.1 billion gain from the sale of a controlling interest in its processing business.
The regional bank said its profit available to common shareholders was $856 million, or $1.15 per share, in the April-June period. It lost $202 million, or 37 cents a share, in the same period a year ago.
Excluding extraordinary items, Fifth Third would have lost about $200 million in the latest quarter, CEO Kevin Kabat said. That is about 27 cents per share.
Analysts polled by Thomson Reuters, on average, expected a loss of 34 cents per share. The estimates typically exclude extraordinary items such as the gain on selling control of the processing business.
Fifth Third shares rose $1.04 to $8.05 in late morning trading.
Kabat said credit trends “remain difficult and signals regarding future trends are somewhat mixed at this point.”
Net loan charge-offs increased from the first quarter to $626 million, and Kabat said the company expects loan losses “to increase moderately in the third quarter, with higher commercial real estate charge-offs partially offset by lower consumer charge-offs.”
Cincinnati-based Fifth Third Bancorp. has 16 affiliates with offices in 12 states, mainly in the Midwest and South.
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